ESDM Uncovered Forged Mining Licenses

The Ministry of Energy and Mineral Resources (ESDM) claims mayors and regents have been issuing forged mining business licenses (izin usaha pertambangan – IUP). Thamrin Sihite, Director General of Mineral and Coal, cited an example of a bogus permit which was supposedly issued in 2008, but referred to Government Regulation No. 23 of 2010 on the Implementation of Mineral and Coal Mining Activities.

“It’s definitely odd. If we ignored it, we would be in trouble,” he said during a hearing with Commission VII of the House, in Jakarta, Thursday (16/2).

Thamrin explained that the Ministry of ESDM has not issued new mining licenses since Law No. 4 of 2009 on Mining and Coal was passed. However, licenses that were issued before the Mining Law was enacted are still valid.

Darori, the Director General of Forest Protection and Nature Conservation at the Ministry of Forestry (Kemenhut), said that the KPK is overseeing some mayors and regents who allegedly abused their authority to issue mining permits.

“There are 1.337 mining cases that resulted in trillions of state losses. Most of these cases relate to mining permits issued for forest areas,” said Darori, during a hearing with Commission VII and the National Police, Wednesday (15/2).

The state, said Darori, lost approximately IDR 241 trillion in Kalimantan. Meanwhile, 70.000 hectares of forest area in Sumatera were cut down and converted to palm plantations. Darori also explained that the National Police and the KPK have received a list of government officials and companies that are involved in the forged IUP cases. He, however, refused to reveal names. “As of now, nine person have been sentenced to jail,” he asserted.

Kemenhut, on the other hand, claimed it has a tight selection process for issuing Borrow-Use Permits for Forest Areas (Izin Pinjam Pakai Kawasan Hutan – IPPKH) to mining companies. Kemenhut has only issued IPPKH  for 130 thousand hectares of forest area, even though it controls 130 million hectares of forest areas.

Sutarman, Chairman of the Criminal Investigation Division (Bareskrim Polri), admitted that the mining sector is vulnerable to abuse. He explained that Polri has handled 190 mining-related criminal cases since 2011, involving 291 suspects.

The National Police, Sutarman added, has confiscated 16 million tons of mining products; 991 bags and two trucks of coal, 22.000 kilograms (391 bags) of tin sand; 80 tons of charcoal; 32 pieces, four grains, and six bars of gold.

“We also confiscated 57 excavators, 19 pieces of heavy machinery, 35 trucks, three ships, and several other  pieces of equipment,” he explained.

Sutarman also said that the IPPKHs issued by mayors/regents have created conflicts with local people, since mining areas are often rejected by locals who consider them to be harmful. For example, the PT. Sumber Mineral Nusantara case in Bima, West Nusa Tenggara  caused rioting and disputes.

Besides the riots in Bima, there are several other examples of conflicts between mining companies and local communities, such as PT Ifishdeco in South Konawe Regency, Southeast Sulawesi Province; PT Aneka Tambang in North Konawe Regency and Kolaka Regency, in Southeast Sulawesi Province; and CV Padak Mas in West Lombok Regency, West Nusa Tenggara Province.

Other conflicts include, PT Asmin Kowalindo Tuhub in Murung Raya Regency, Central Kalimantan Province; PT Gunung Emas Abdi in East Barito, Central Kalimantan Province; PT Tunas Inti Abdi in Bumbu Regency, South Kalimantan Province; PT Adaro in Tabalong Regency, South Kalimantan Province; and PT Lestari Asri Jaya in Tebo Regency, Jambi Province.

(M Agus Yozami / Mahinda Arkyasa)